Summary
Decentralized autonomous organizations (DAOs) are digital entities governed by code instead of legal contracts. They face challenges due to their large pools of assets managed on-chain.
Key Points
1. DAOs are decentralized autonomous organizations governed by code rather than legal contracts. They transcend geographical borders and face unique challenges due to the large pools of assets they manage on-chain.
2. DAOs have amassed significant treasuries, which are typically managed on-chain. This means that the assets held by DAOs are stored and controlled through blockchain technology, enhancing transparency and security.
3. The governance structure of DAOs allows for efficient decision-making processes and eliminates the need for centralized authorities. However, this also presents challenges in terms of establishing consensus and ensuring the alignment of incentives among participants.